Europe After what has been a uniformly negative week, today’s US payrolls report has served to offer a brief respite to markets with a solid but not spectacular set of numbers, although the unemployment rate did see an increase from 3.5% to 3.7%. Today’s gains have been broad based with today’s outperformers including the likes of Abrdn, which appears to be enjoying some buying interest ahead of what is likely to be its eviction from the FTSE100 at the next reshuffle in what has been a disappointing year to date for the asset management sector. St. James Place is also having a positive day, after the shares hit their lowest levels since December 2020 earlier this week. The energy sector is also getting a lift on the back of a rebound in oil prices, with BP leading the way, and Shell shrugging off reports that CEO Ben Van Beurden is stepping down next year, after 40 years at the company. The DAX has been a notable strong performer, led by the auto and manufacturing sector. Today’s worst performers on the FTSE100 have been the house builders on the back of a downgrade from HSBC.   With the share prices of Berkeley Group, Persimmon, Taylor Wimpey and Barratt Developments already back at their post lockdown lows, and down between 30% and 50% year to date, today’s action does appear to have all the hallmarks of a horse stable door moment. HSBC has cited concerns over the cost of living, and rising interest rates on the durability of the housing market, which could result in a “plunge” in housing demand and lower prices. Judging by the share price performance seen over the last 12 months one has to ask as to whether these concerns aren’t already priced in?   US US markets opened higher after what can only be described as a respectable jobs report for August, which saw 315k jobs added. Given the negativity this week and the US Labour Day long weekend coming up, this afternoon’s numbers have helped give markets a short-term lift, and prompted an element of short-covering, bargain hunting, however you want to describe it, with the US economy continuing to look resilient, as more workers return to the jobs market. With their share price close to the July lows, and the guidance downgrades from some of its peers Broadcom’s latest Q3 numbers had a low bar to clear, which it cleared with ease. When the company reported in Q2, its guidance for Q3 was for revenues to rise to $8.4bn, a rise of 24% from a year ago, and profits to come in at $8.3c a share. Yesterday’s numbers surpassed those expectations with revenues of $8.46bn and profits of $9.73c a share. For Q4 revenue is expected to rise to $8.9bn, while its order book has grown to $31bn with a 50-week lead time. FX Today’s US payrolls report saw the US economy add 315k jobs in August, while wage growth remained constant at 5.2%. Somewhat disappointingly the unemployment rate rose to 3.7% from 3.5%, however that was mainly due to a sharp rise in the participation rate from 62.1% to 62.4% which suggests that people are returning to the workforce due to the rising cost of living. This is exactly what you want to see, and while no-one wants the unemployment rate to rise it’s rising for the right reason, because people want to get back into work. This has prompted a little US dollar weakness today, however this is probably no more than profit taking at the end of a week, which has seen the greenback post 24-year peaks against the Japanese yen and 20-year highs on the US dollar index. This afternoon’s numbers also add to the idea that the US labour market remains tight and that a lot of these people will end up filling some of the 11.2m vacancies that are waiting to be filled in the US economy. It also means that the Federal Reserve is likely to press ahead with a 75bps rate hike when they next meet in September. The rebound in crude oil prices is also seeing the Norwegian Krone get an uplift at the end of a disappointing week. The euro is also getting a lift ahead of next week's ECB rate meeting, where it is expected we could see a 75bps rate rise.   Commodities Crude oil prices have continued to find support just above the $90 a barrel level which acted as a floor in August. This has come about through continued speculation that OPEC+ will look at cutting output if prices fall below the $90 a barrel level. The Saudi oil minister has previously gone on the record as saying that this could be an option if the demand outlook deteriorates further. This...

Today’s market summary The Dollar strengthening has reversed. US stock indexes futures are down currently. Brent is edging up presently ahead of G7 finance ministers virtual meeting today where they are expected to agree on plans to impose a price cap on Russian oil. Gold is edging up today. Top daily news Global stocks are subdued currently ahead of August US payrolls report today after SP500 snapped 4-session losing streak Thursday. Amazon shares gained 0.83% outperforming the market, Microsoft shares lost 0.44% Thursday while Britain's antitrust regulator said Microsoft’s $69 billion acquisition of "Call of Duty" maker Activision Blizzard could harm competition in gaming sector and it needs to be investigated in depth. Forex news Currency Pair Change EUR USD -0.5% GBP USD -0.48% USD JPY +0.03% AUD USD +0.21%   The Dollar strengthening has reversed currently. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, gained 0.7% Thursday while the US Bureau of Labor Statistics reported less Americans applied for initial jobless claims last week than expected while their number declined. EUR/USD joined GBP/USD’s accelerated sliding Thursday while the flash manufacturing PMI for euro zone was downgraded to 49.6 in the final reading from 49.7 initial estimate. Both euro and Pound are lower against the Dollar currently. USD/JPY accelerated its climbing yesterday while AUD/USD accelerated its retreating with the Australian dollar higher against the Greenback currently and yen little changed. Stock market news Indices Change Dow Jones Index -0.16% Nikkei Index -0.3% Hang Seng Index -0.88% Australian Stock Index -0.23%   US stock indexes futures are down currently ahead of August US nonfarm payrolls report at 14:30 CET with the yield on benchmark 10-year Treasury notes down at 3.259%. The SP500 and Dow closed higher yesterday with the three main benchmarks recording returns in the range of -0.3% to 0.5% while data showed economic activity in the manufacturing sector grew in August at steady pace. European stock market futures are lower today after ending down Thursday led by travel and leisure shares. Asian stock indexes futures are retreating currently with Chinese blue chips leading losses amid reports the southwestern Chinese metropolis of Chengdu announced a lockdown of its 21.2 million residents. Commodity market news Commodities Change Brent Crude Oil +1.89% WTI Crude +2.51%   Brent is edging up presently ahead of G7 finance ministers virtual meeting today where they are expected to agree on plans to impose a price cap on Russian oil. The price cap would deny London-brokered shipping insurance - which covers about 95% of the world's tanker fleet - and finance to cargoes priced above the cap. Prices ended down Thursday on concerns over new COVID-19 lockdown measures in China. The US oil benchmark West Texas Intermediate (WTI) dropped 3.3% but is higher currently. Brent crude lost 3.4% to $92.36 a barrel on Thursday. Gold market news Metals Change Gold +0.37%   Gold is edging up today. Spot gold fell 0.87% to $1696.09 on Thursday. Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

US Dollar: Sep '22 USD is Down at 109.315. Energies: Oct '22 Crude is Up at 88.58. Financials: The Dec '22 30 Year bond is Up 1 tick and trading at 133.19. Indices: The Sep '22 S&P 500 Emini ES contract is 4 ticks Higher and trading at 3969.75. Gold: The Dec'22 Gold contract is trading Up at 1717.30. Gold is 80 ticks Higher than its close. Initial conclusion This is not a correlated market. The dollar is Down, and Crude is Up which is normal, but the 30-year Bond is trading Higher. The Financials should always correlate with the US dollar such that if the dollar is lower, then the bonds should follow and vice-versa. The S&P is Higher, and Crude is trading Higher which is not correlated. Gold is trading Higher which is correlated with the US dollar trading Down. I tend to believe that Gold has an inverse relationship with the US Dollar as when the US Dollar is down, Gold tends to rise in value and vice-versa. Think of it as a seesaw, when one is up the other should be down. I point this out to you to make you aware that when we don't have a correlated market, it means something is wrong. As traders you need to be aware of this and proceed with your eyes wide open. Asia is trading mainly Lower with the exception the Shanghai exchange which is fractionally Higher. Currently all of Europe is trading Higher. Possible challenges to traders today Average Hourly Earnings is out at 8:30 AM EST. This is Major. Non-Farm Employment Change is out at 8:30 AM EST. Major Unemployment Rate is out at 8:30 AM. This is Major. Factory Orders are out at 10 AM EST. Major. Treasuries Traders, please note that we've changed the Bond instrument from the 30 year (ZB) to the 10 year (ZN). They work exactly the same. We've elected to switch gears a bit and show correlation between the 10-year bond (ZN) and the S&P futures contract. The S&P contract is the Standard and Poor's, and the purpose is to show reverse correlation between the two instruments. Remember it's likened to a seesaw, when up goes up the other should go down and vice versa. Yesterday the ZN made its move at around 10:10 AM EST. The ZN hit a High at around that time and the S&P moved Higher shortly thereafter. If you look at the charts below ZN gave a signal at around 10:10 AM EST and the S&P moved Higher at around the same time. Look at the charts below and you'll see a pattern for both assets. ZN hit a Low at around 10:10 AM EST and the S&P was moving Higher shortly thereafter. These charts represent the newest version of MultiCharts and I've changed the timeframe to a 15-minute chart to display better. This represented a Short opportunity on the 10-year note, as a trader you could have netted about 20 ticks per contract on this trade. Each tick is worth $15.625. Please note: the front month for the ZN is now Dec '22. The S&P contract remains is Sep' 22 for the time being. I've changed the format to Renko Bars such that it may be more apparent and visible. Charts courtesy of MultiCharts built on an AMP platform ZN - Dec 2022 - 09/01/22 S&P - Sep 2022 - 09/01/22 Bias Yesterday we gave the markets a Neutral bias as we didn't see much in the way of correlation Thursday morning. The markets traded Mixed as the Dow gained 146 points and the S&P gained 12 but the Nasdaq dropped 31 points. Given that today is Jobs Friday our bias is Neutral. Could this change? Of Course. Remember anything can happen in a volatile market. Commentary Yesterday morning, as we reviewed the markets, the first thought crossing our minds, was "another down day." We didn't see much in the way of correlation, and we gave the markets a Neutral or Mixed bias. The markets closed Mixed as the Dow and S&P gained but the Nasdaq dropped. We were tempted to call this edition "Finally" as it took a week to finally close somewhat Higher. Today is Jobs Friday and as such our bias is Neutral and it is also Labor Day weekend, which means our next edition will be Tuesday. We always maintain a Neutral bias on Jobs Friday as historically speaking the markets have never had any sense of normalcy on that day. Could this change? Of course. Much of what happens today will be predicated upon the Jobs report out at 8:30 AM EST.

GBP/AUD sellers threw the pair into overdrive after hitting a wall of resistance near 1.70261 on the one-hour chart, which put it on the back foot. The pound sterling has fallen back below Thursday's lows against the Australian dollar as bearish sentiment has intensified, with bears testing the 1.69757 barrier. There is a chance that if they manage to break through this level, the price may continue to fall towards 1.69620. There is a possibility that the market can be sent even lower if this hurdle can be decisively broken, with more sellers aiming at 1.69224 and 1.699469. Alternatively, if buyers see the price in the range of 1.69757 as sufficiently attractive to step into the market, then this level may act as a support, holding the pair in the vicinity of the 50-EMA. It is also possible that buyers will find another opportunity to challenge the 1.70261, aligned with the 200-EMA.  According to the short-term momentum oscillators, selling pressure is picking up, with the RSI pulling out of the neutral zone and stepping into the selling area. In addition, shrinking MACD bars are also a sign that buying pressure is waning. While, momentum has not yet confirmed the bearish bias as it oscillates above the 100-level. 

Another euro zone's inflation report is noticeably above analysts' expectations. Eurozone data published on Friday afternoon showed producer price growth of 4% for July and 37.9% year-on-year. At the same time, analysts had expected a 2.5% m/m increase and a slowdown in the annual inflation rate to 35.8%. The fresh data set a new historical record, shattering the hopes we saw for the peak growth rate two months ago. Producer prices are a step ahead of consumer inflation, so it is unlikely that the pressure on final consumer prices will diminish in the coming months. Preliminary CPI estimates published for August confirm that the inflation spiral continues to unravel. Prices are, on average, 9.1% higher than in the same month a year earlier, almost half of which is due to a jump in energy prices. But there are two additional worrying factors. The first is the acceleration in core inflation to 4.3% y/y, indicating a breadth of inflationary pressures. The second is the drop in the unemployment rate to 6.6% (a historic low since at least 1994), which makes the price spiral even more dangerous. The combination of low unemployment, rising prices and a falling euro are sure companions of stagflation. In such an environment, it is not surprising that the ECB is becoming increasingly hawkish, convincing markets of its willingness to raise the rate by 75 points next week. This tightening of rhetoric has halted the sell-off in the euro. Even if the ECB achieves the same acceleration as the Fed with a 75-point rate hike next week, there would still be a considerable lag in terms of nominal rate levels and balance sheet dynamics. The Fed has to double the pace of asset sales from the balance sheet to 90 billion a month from September, while the ECB is not even considering such an option. On the fundamental analysis side, Fed policy and macroeconomic factors lean towards the current EURUSD stabilisation at parity being a temporary halt but not base support. The acceleration in ECB policy normalisation is making the euro fall more slowly, but not enough for a trend reversal.  

An action-packed week lies ahead, featuring central bank meetings in the Eurozone, Canada, and Australia, an output decision from the OPEC cartel, and the selection of the next UK prime minister. The ECB will likely steal the show, as policymakers seem prepared to roll out the big guns to defend the sinking euro. 

EUR/USD dropped closer to a nearly two-decade low on Thursday amid resurgent USD demand. Hawkish Fed expectations, surging US bond yields, recession fears continue to underpin the buck. Traders now move on the sidelines as the focus remains glued to the US jobs data (NFP) on Friday. The EUR/USD pair came under renewed selling pressure on Thursday and dived to the 0.9900 neighbourhood, back closer to its lowest level since December 2002 touched last week. The US dollar caught aggressive bids and reached a fresh two-decade high, which, in turn, exerted heavy downward pressure on the major. The recent hawkish comments by several Fed officials lifted market bets for another supersized 75 bps rate hike at the upcoming FOMC meeting on September 20-21. This, along with upbeat US economic data, continued to underpin the greenback. The US Initial Jobless Claims unexpectedly fell to 232K during the week ended August 26. Furthermore, the US Manufacturing PMI was revised higher to 51.5 for August from the flash estimate of 51.3 and the ISM Manufacturing Index remained stable at 52.8. The data reinforced expectations for a more aggressive policy tightening by the Fed and pushed the US Treasury bond yields higher. In fact, the yield on the risk-sensitive 2-year US government bond surged to the highest since 2007, while the benchmark 10-year yield rose to more than a two-month peak. Apart from this, growing worries about a deeper global economic downturn, amid headwinds stemming from fresh COVID-19 lockdowns in China and the war in Ukraine, further benefitted the safe-haven buck. The shared currency, meanwhile, failed to gain any respite from rising bets for a 75 bps rate hike by the European Central Bank at its meeting next week. That said, a later recovery in the US equity markets capped gains for the USD and assisted the EUR/USD pair to stall its sharp intraday decline and edge higher during the Asian session on Friday. Spot prices hold steady above mid-0.9900s, though lack bullish conviction as the market focus remains glued to the closely-watched US monthly employment details, due for release later during the early North American session. The popularly known NFP report will provide a fresh insight into the economy's health in the face of rising rates and stubbornly high inflation. This, in turn, should play a key role in influencing the near-term USD price dynamics and help determine the next leg of a directional move for the EUR/USD pair. Technical Outlook From a technical perspective, the 0.9910-0.9900 area now seems to have emerged as immediate strong support and should act as a pivotal point. A convincing break below will be seen as a fresh trigger for bearish traders and set the stage for an extension of a well-established downtrend. The EUR/USD pair might then accelerate the fall towards the next relevant support near the 0.9850-0.9845 zone before eventually dropping to the 0.9800 round figure. On the flip side, momentum back above the parity mark might continue to confront stiff resistance near the 1.0050-1.0055 supply zone. This is followed by last Friday’s swing high, just ahead of the 1.0100 mark, which if cleared decisively will suggest that the EUR/USD pair has formed a near-term bottom. The subsequent move up has the potential to lift spot prices to the 1.0150-1.0155 intermediate hurdle en route to the 1.0200 round figure and the 1.0260-1.0270 resistance zone.

EUR/USD - 1.0027 Despite euro's decline from last Friday's 1.0089 high to 0.9914 Monday, subsequent erratic rise to 1.0078 in New York yesterday due to active buying in euro on market's hawkish EBC outlook suggests choppy swings above Aug's 20-year 0.9901 trough may continue and above 1.0089 may head to 1.0123, 1.0146/47. On the downside, only a daily close below 1.0000 would yield re-test of Wednesday's 0.9972 low, break would extend further weakness towards 0.9947. Data to be released on Thursday Australia AIG manufacturing index, manufacturing PMI, building capex, capital expenditure, Japan Jibun bank manufacturing PMI, China Caixin manufacturing PMI. Germany retail sales, S n P manufacturing PMI, Swiss CPI, retail sales, manufacturing PMI, Italy S n P manufacturing PMI, unemployment rate, GDP, France S n P manufacturing PMI, EU S n P manufacturing PMI, employment change, U.K. S n P manufacturing PMI. U.S. initial jobless claims, continuing jobless claims, labor costs, productivity, S n P manufacturing PMI, construction spending, USM manufacturing PMI, Canada building permits and S n P manufacturing PMI.

Europe It’s been another disappointing day for the FTSE100, with a slide in energy prices weighing on the likes of BP and Shell, with both crude oil and natural gas prices sliding for the second day in succession. Up until the end of last week the FTSE100 had been on course for a positive month, however the last 3 days, and the hawkish tone from Powell’s Jackson Hole speech, has seen the rug pulled out from underneath the positive mood. We’re also seeing declines in the likes of National Grid, SSE and Centrica as concerns about a windfall tax on some of their profits resurfaces. Due to the way that electricity prices are linked to the gas price, some companies are reaping huge profits given their electricity is being generated by renewables, which has a lower cost of generation. This is giving these companies a nice windfall, which governments are starting to cast an envious eye over. With the economic outlook looking increasingly bleak it’s not been a great month for the likes of the UK house builders, which have seen further falls in August, with Persimmon, Taylor Wimpey and Barratt Developments all down over 14%, with Next and JD Sports also down over 10%.   US US markets opened modestly higher today after the latest ADP jobs report came back with an unexpectedly low 128k jobs added in August, although the gains have proved to be rather laboured as we come to the end of what has been a negative month for US markets.    Snap shares jumped higher on the open after confirming it was looking to cut 20% of its workforce as well as embarking on a series of measures to restructure the business. Bed, Bath & Beyond shares have seen another turbulent session after the company said it may well look to sell and issue new shares from time to time in order to help it to pay down its debt levels, as well as for other general corporate purposes. The company also announced that it sees a Q2 sales decline of 26%, while announcing the closure of 150 stores and significant job losses, including senior management positions, including the COO and chief store officer.   In the lead-up to yesterday’s Q3 numbers from HP there was some concern about the effects of slowing PC demand on its outlook over the rest of the year. These fears proved well-founded as the company downgraded its profit forecast, on the back of a slowdown in notebook sales, which were down 32%. Q3 revenue came in at $14.66bn, almost $1bn below expectations, primarily due to lower PC sales. On the profits front, these were better, coming in as expected at $1.04c a share, however Q4 guidance downgrades has prompted the share price to drop sharply. For Q4 profits guidance was disappointing, with downgrades to Q4 and the full fiscal year. Q4 profits are expected to come in at $0.84c a share, down from $1.07c a share, while the full year outlook has been downgraded to $4.07 mid-point from $4.30. FX The euro has continued to gain against the pound as markets start to price in the prospect of a 75bps rate hike next week. The rebound in the euro is a little surprising given that the latest inflation numbers for August posted another record high of 9.1%, and while inflation appears to be showing some signs of softening in France and Germany, in Italy it remains on fire. The latest August numbers saw headline CPI rise to 9% from 8.4%, however in July PPI rose to an annualised 45.9%, up from 41.9%, which suggests further upward pressure is coming, which will cause all manner of problems for the ECB.     The pound is slowly catching the Japanese yen as being the worst performer this year after another poor month, as it looks to post its worst performance against the US dollar since October 2016, briefly dipping below the 1.1600 level. Sentiment around the pound has become supremely negative despite an increasing expectation that the Bank of England will have to raise rates sharply over the next few months to tame a late year surge in inflationary pressure. The worst performer today has been the Norwegian krone on the back of the slide in energy prices.    Commodities UK natural gas prices for October have seen a sharp drop from the 714p peaks of last week, falling for the second day in succession, dropping below 450p today, despite Russia closing down the Nord Stream 1 pipeline for “maintenance” purposes. Crude oil prices have also come under pressure, after another set of Chinese economic numbers that pointed to a weak economy, alongside reports of further restrictions being imposed in places like Shenzen and Dalian in response to fresh covid outbreaks....

Declining oil prices have hurt the FTSE today, while record eurozone inflation comes in the face of a potential 75bp rate hike from the ECB. FTSE suffering as energy names come under pressure “The FTSE 100 has led the losses in Europe, with a weakening pound doing little to help stifle the downdraft that sparked yet another one-month low for the index. Unfortunately, the prominence of commodity stocks within UK markets has proven its undoing, with energy names Tullow oil, Energean, and BP feeling the pinch as oil looks to be heading for the worst losing run in over two months. On the flip-side, uranium has enjoyed a welcome return to the spotlight, with the growing support behind a nuclear resurgence helping to elevate stocks over the past week.” Eurozone inflation hits yet another record as ECB prepares potential 75bp hike “Inflation pressures continue to dampen market sentiment, with eurozone inflation hitting a record high for the ninth consecutive month. Comments from ECB member Holzmann essentially guaranteed a minimum 50Bp rate hike next week, with 75Bps also being debated. Unfortunately, there looks to be little reason for optimism going forward, with the ECB, Fed, and BoE all faced with the prospect of ramping up interest rates in the midst of a recession and cost of living crisis. ”

EUR/USD Current Price: 1.0028 Market participants remain concerned about economic growth and aggressive monetary tightening. Germany's inflation kept rising in August, according to preliminary estimates. EUR/USD is holding on to modest gains above 1.0000, but buyers are losing interest. The EUR/USD pair posted a modest daily advance on Tuesday, trading at around 1.0030 heading into the Asian opening. The shared currency overcame persistent dollar demand as investors still increased bets on an ECB 75 bps rate hike in September. Financial markets kick-started the day with a better tone, but the sentiment soured ahead of Wall Street’s opening. Asian and European equities closed in the green, but US indexes edged firmly lower as government bond yields resumed their advances. Generally speaking, market participants are concerned about slowing growth, exacerbated by aggressive monetary policies meant to take down inflation. Federal Reserve chief Jerome Powell acknowledged the burden of higher rates on households and economic progress but made it clear the central bank would continue with the tightening plan. Meanwhile, macroeconomic data was mixed. The August EU Economic Sentiment Indicator contracted to 97.6 from 98.9, worse than expected. Consumer Confidence in the same period remained unchanged at -24.9. German inflation, in the meantime, was higher than anticipated in August, up by 7.9% YoY, according to preliminary estimates. US figures were more encouraging, as the JOLTS Job Openings report showed 11.24 million job openings in July. The Conference Board Consumer Confidence improved in August to 103.2 after falling in the previous three months. On Wednesday, the EU will release the preliminary estimate of its August Consumer Price Index, which is foreseen to be up by 9% YoY, a new multi-decade high. On the other hand, the US will publish a revamped ADP Employment Change report on private job creation. ADP has changed how it calculates the figure,  and this first release of the new report may have a limited impact on price behavior. EUR/USD short-term technical outlook Despite the intraday advance, the daily chart for the EUR/USD pair shows that the risk remains skewed to the downside. The pair keeps developing below bearish moving averages, with the 20 SMA providing dynamic resistance at around 1.0120. The Momentum indicator turned south well below its midline, while the RSI indicator hovers around 40, reflecting bears are still in control of the pair. The 4-hour chart hints at decreasing buying interest. The pair remains above a mildly bullish 20 SMA, which provided intraday support, although the longer moving averages stay well above the current level, with the 100 SMA gaining bearish traction. At the same time, the Momentum indicator turned south within neutral levels, while the RSI indicator is currently flat at around 54. The aforementioned 20 SMA stands at around 0.9980, the level to break to confirm a near-term bearish continuation. Support levels: 0.9980 0.9940 0.9895 Resistance levels: 1.0030 1.0080 1.0120 View Live Chart for the EUR/USD

Key highlights EUR/USD failed to recover above the parity level and declined. It broke a key rising channel with support at 0.9940 on the 4-hours chart. EUR/USD technical analysis Looking at the 4-hours chart, the pair settled below the 1.0050 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours). Recently, it saw a minor upward move above the 1.0000 resistance zone. However, the bears were active near the 1.0080 level. It failed to clear the 38.2% Fib retracement level of the downward move from the 1.0368 swing high to 0.9902 low. It started a fresh decline below the 1.0000 support. There was a break below a key rising channel with support at 0.9940 on the same chart. The pair is now approaching the 0.9900 support zone. If there is a downside break below the 0.9900 support, the pair could decline towards the 0.9850 support. Any more losses might call for a move towards 0.9720. Conversely, the pair might rise again above 0.9950. On the upside, the pair is facing resistance near the 1.0000 level. The next major resistance is near the 1.0080 level. A clear move above the 1.0080 resistance might send the pair higher towards the 1.0120 level or the 100 simple moving average (red, 4-hours).